certainty 6 per tent. for a munber ©f years,
on the termi of the loans for a partial reduction
for 10 years,and alefs interest on the arrears of
interest then due. This was certainly a full and
generous equivalent, and the only advantage
gained by the public, was a modification of the
debt, by which the burthen would be divided,
and the increafcd number of citizens during 14
or 15 year*-, would bear their proportion of the
cxpence of a war, in the benefit of which they
so effpntially participated. At the time of fund
ing the public debt the irredeemable quality was
confidcred as a full equivalent, and a compliance
with the public faith. Mr. B alledgcd that he
was then a public creditor, and confidcred it in
that point of liglvt. He was a creditor that had
a fight to feel a loss as mud? as any man.—He
creditor of 177 ft, when the army could
notoe lent to Canada without hard money.—
He was a creditor in 1777> when the prisoners
were perishing for want of food and cloathing,
and the government could not furnifh a iingle
suit, or a tolerable supply for their extreme dif
lref«.—He was a creditor of I 77&» w hen at the
Valley Forge, the tracks of the ioldiers were
marked with blood for want of shoos, which he
coile&ed in different parts of the Hate by his
own exertions, and at his own expence without
ft cor reward; and was not repaid till 17 79.—
He was a large creditor of 1779, w^ien Cungrefs
lent to all parts of the Union, earnestly calling
on the friends of their country to come forward
with loans for the public exigencies ; and he was
a creditor as an officer of the army, in which lie
had Curved. Under this view of the fubjed Mr.
B. acknowledged that he had entertained great
jealoufies,left foipic other end was aimed at by
the pre fen t resolution, than the ostensible one ;
this was raised when he heard gentlemen found
the success of the resolution pn the tarings made
• by the funding system, when those gentlemen
had for years pall been continually reprcfenting
that system as founded on an extravagant « afte
of public trcafurq.,: TKat th* j/redeemability of
the 4ebt was a tax on tne government, which
ought never to have been admitted, as monies
might have been loaned at 4 per cent, and by
that mwans one third of the debt saved to the
union : What ideas then must we form ot a re
solution calculated to raise the hopes of the me
moria lifts, which in the end would certainly turn
out a mere Pnadow and worse than a Ihadow;
this really was trifling with the complaints of
our fellow citizens. There had been 110 favmgs,
the creditors who had poffefllon of the public
contra<fts,had received a full equivalent for their
demand by their own free content, at 20s. in the
pound; where then was room for a demand on
the government for any saving ? If there was a
foundation for a claim, it mntl be against the
poflcflorsof the certificates, but however just it
might be, it was merely illusory to form the re
solution on principles that had no existence.
The loffesfuftained by the line of the army,
were not peculiar to them as creditors of the
United States. All classes of citizens who had
generously advanced their money for the support
of this very army in food, cloathing, arms and
ammunition, as well as (hat of the government
itfelf at home and abroad, had been equal fuffer
ers, without the emolument that the army had
received, in the most distressing times of the
war. The army had been a refuge for many
gentlemen driven from their homes, while other
citizens were obliged to wander for a consider
able time without employ or relief. Ke conti
nued his observation* to other citizens who had
fuffered during the war, and particularly men
tioned the fufferers at Falmouth, Charles-Town,
New-York, Norfolk, York-Town, and South-
Carolina, as those who were of the firft class in
the United States; as also the aged, the widows
and the orphan creditors, who had fuffered with
out receiving any advantage whatever from the
public bounty.
Mr. 13. :hen proceeded to consider the practi
cability of the measure, fuppofmg its equality
and just ice to be fairly established. As the appli
cation was now founded on the savings on each
mans individual certificate, the principle equal
ly reached every public creditor.—Suppose then
A.8.C.8. and E<rece ; oed their certificates toge
ther ; A. fold his at 6/"8 in the pound to raise a
tapiral to purctauc public'lati3s, which at one
time in this city fold at 6d. per acre. B. fold
his certificate at 2/6 in the pound, tofave a wife
and children from starving. C. fold his to raise
a capital to go into the speculating line. D.fold
on one day from necessity, but replaced it the
next day and kept it, till the funding system
took place, and then fold at 20/. in the pound,
while E. having confidence in the governmeut,
and not under a necefiity of felling, funded it un
der the present system. How could a discrimi
nation take placc here, or would it be fair equal
ly to remunerate all these original holders ; but
suppose some had fold at 20f and also had recei
ved all the emoluments of the Pennsylvania line,
where would be the deftributive justice of the
measure now proposed. If you extend this doc
trine to the public at large, it will ap
pear in a strong point of light. It is well known
that the common practice of the government
during the war, was to ifiue certificates in fictiti
ous names, the names of clerks in office, of heads
of departments, or otherperfons, merely to make
them anfvver the purpose of a paper currency :
As they were payable to bearer, the name was
th'#ng;ht to be material. The person do
ing the service or lending his money, received
thele certificates, and was really the original
holder, yet the face of the certificate spoke a
different language. In this cafe a difcriminati
-011 would be impossible, and much the largest
part of the public debt, was contracted in this
way after the war was over. Many debts had
been paid by merchants and others to their fo
reign creditors, and others in certificates at their
nom. i.'l vaiue, and .11 other cases individuals
hf.d failed, and the loss wholly fallen on their
creditor 3.
Mr. Boui'.inot carneftly contended that the cx
pence of a difenmirmtien would exceed the reve
nues of the United States. The nature of tranf
ferable flock, which i» designed to operate ascur
rent monct, furoids the idea ofa difcriniination,
and oil (iU jlic credit must necessarily fail if such
a doolrnie was to prevail ill the finances of the
union. This was a very serious and important
idea, worthy the attention of the applicants, who
certainly were interested in the pnblic weal,
The right, of freemen to dispose of their own
property as they please, was involved in the
question ; for if the government was to make
up every loss ou a transfer, then it ouglit not to
be made withour their consent.
Mr. Boudinot hoped he would not be.under
flood to deny either the services or the fu(Jer
ings of the army; but he alledged the proiuif
ed reVompence was given, which had
ferrtd With all the legal and equitable rig*, t$
the holder who had received from government
the full value, and therefore no further demand
eitb.tr in law or equity remained againll ihe go
vernment. The negotiable quality was apriuci
pie in the securities infilled on by the army, and
which they had exercised as they chose, for dif
ferent purposes, and from different views. He
acknowledged, that the generosity, benevolence,
and humanity of Congress had been addressed :
To this he answered that they were but ftewirds
cf the people's property, tor which they vera
aufwerable. That they were not sent here to
fliow their generosity; it wa9 to do jtiflice, and
that not to one clafa, but to every description of
citizens. He knew of but one rule for every
citizen of the U. States. They were all equally
represented in that houfc—but at all events it
bccamethem tobejuft beforethey weregenerous.
Mr. B. allured the house that he had taken up
so much of their time, fcecaufe he found that 119
one had come forward fairly to meet the quefti
on,and he had too great a regardfor the njemori
aliltj to wish themtogoaway under,the ideathat
any thing had'oeen refufed to them tvhich ought
in propriety to have been done. At any rate he
had Oindidly aad above board given
of his vote on this important occaflon, which
would be a;;ainfl the question prop'ofed by the
gentleman from Virginia.
The following are the Refoluhons mvved, -and the
fubjiance of the remarks and calculations nade y
h Mr. Giles in the Houje oj Reprefcntdtives on
iVedneJdax lujl.
I now iubmit to the confederation of the
house certain resolutions, which I hold in my
hand; and after leading which, I will p*oceed
10 mention the' rcafons, which have influenced me
in moving them ; the resolutions are as follow :
Resolved, that'the President of the United
States be requested to cause to be laid before this
House, copies of the authorities under which
loans have been negociated, pursuant to the a&s
of the 4th and 12th of August 1790, together
with copies of the authorities dire<Sting the ap
plication of the monies borrowed.
Resolved, That the President of the United
States be requested to cause this House to be fur
niflied with the names of the persons by whom,
and to whom, the refpe&ive payments of the
Frcnch debt have been made in France, pursu
ant to the a6b for that purpose, fpecifpng tne
dates of the refpeftive draughts upon the com
miftioners in Holland, and the dates of thfc re
fpe&ive payments of the debts : A similar state
ment is requested, refpedling the debts to Spain
and Holland.
Resolved, that the Secretary of the treasury
be dire&ed to lay before the this house, an ac
count, exhibiting half-monthly, the balances be
tween the United States and the bank of the
United States, including the several branch
banks, from the commencement of those insti
tutions to the end of the year 179 a.
Resolved, that the Secretary of the treasury
be dire&cd to lay before this House an account
of all monies, which may have come into the
finking fund, from the commencement ©f that
inilitution, to the present time, fpecifying the
particular fund from which they have accrued,
and exhibiting, half yearly, the sums uninvest
ed, and where deposited.
Resolved, that the Secretary of the treasury
be dire&ed to report to this House the balance
of the unapplied revenues, at the end of the year
1 79*» fpecifying whether in money or bonds,
and noting where the money is
he also make report of all unapplied revenues,
which may have been obtained by the several
loans authorifedby law, and where such monies
a re now deposited. r-b
Thcfe resolutions have grown out of thfc em
barraflVnents I have met with, in attempting to
comprehend the report 0$ tnefecretaiy of the
irealuiy, made ;n pursuance; "of an order of this
ho'lie, of the 27th of December 1792, exjjibit r
ing fuudry ilatements refpc&ing foieign loans.
Thtle embarri»ffine»»ls have increased in pro
portion to the attention which I have bestowed
on the fubj< ft ; and a number of official papers
to which I have had refeience tot information;
instead of elucidating ft em rathefuo oblcurethe
ei.qu.iy. To obtain neceflary information there
l6>e is the objet* ol tl>cfc resolutions, and no one
con doubt the immediate applicability this
in tor (nation to a bill now lying upon your ta
ble, tor the purpose of reirnbuifjng the loan of
2,000,000 of Uollais made ol the Bank of the
Lniied States, by opening a new loan for that
sum abroad, and by changing the application of
the like ium already borrowed and appropri
atcd to the difcliarge of the debt to France from
its original defoliation, to the iiif»
charge of the<ieht to the B<\nk.
The hti\ resolution has anfen from that pait
of the printed report of thcfccrctary of liic trea
sury, which exhibits the terms upon which va
rious loans have been made abroad, but neither
pre'ents the pt cafe authorities under which thofc
negocia'.'.ons have been made, nor the precise
amount ol the sums borrowed lor the fparate
and diUm£t objects ol the two a£ls mentioned in
l.he resolution.
Aupihcr reason has more strongly suggested
the propriety of calling !or the information re
quelled by this resolution. The b>ll now upcu
your table which has been before alluded to,
contemplates the whole of the monies borrow
ed abroad and now on hund, as being originally
278
appropriated to thedifshargeof the Trench deht,
and proposes to change the orig.nal dell,nation
of these identical monies and the reason ani<*n
ed for this mea-fure has been the unfctilcd Hate
of affairs in trance.
In the printed report, the Secretary or the
T.eafury,remarks that the fame monies arc ap.
plicalilc to tire finking fund. It appears Hrange
after express and dift'n£l appropriations by
taw, that anv mifunderftunding relative to this
ohirft, rfionl'd cxift, and the information called
lor may poflTMy explain this teeming contradic-
'I'he fccond resolution has anfen from that
pa*t of thr printed report marked B. and which
exhibits the payments made to France, but does
not furnifh the names of the persons engaged in
those negociations; nor docs it present to view
the length of timt those peifous have bicn p»f
fciTed ot the public monies bv stating the dates
of the refpeflive draiijjhis in Holland and the
dates of the afiual application of the monies to
the discharge of the debt, and it is evident that
from the timrsthc loans are refpeflively created,
to the times of the actual application of the mo
nies borrowed, the United States are paying the
usual interest upon the debt intended to be le
deemcd, and the stipulated interest. upon .he mo.
nies borrowed for the redemption.—This re-
mark is equally applicable to the payments of
other foreran debts with the payments of the
debt to Fiance.
The third resolution has arisen from calcula
tions drawn partly from the iali page of l he
printed report, and from the original Bank
book of the United States, from which it appears
that the balances in Bank in favor of the United
States, were as follows
n Bank Philadelphia, 30th May?)
1792, and 16th June fame year V 676,959 55
in Branch Banks, )
79?, June 30th, in all Banks in
the United States, 555« 2 7 l 22
July 28th and 31 ft in do. 511*423 91
August 25th, 30th and 31ft,
1 ' in do,
— . . • I 'Z7~O. ~ '
On the Hrfl of June, a loan was negocwited
yith the Bank of the United Slates on the pait
of the United States tor 100,000 dolls, at 5 per
cent, per ann. On the firft of July another lo«m
was made upon the fame terms for the like sum.
On the lft of August another loan was made
upon the fame terms for the like sum. On the
lft of September another loan was made upon
the fame terms for i!ie like sum. It appears
from the last page of the printed report, that
there had been drawn intoAmcrica from theisth
of December, 1790, to the 27th of January, 1792,
of the monies borrowed abroad, the sum of
2,663,621 florins, 2 stivers, and 6 deniers. If
this sum were unexpended and lodged in the
bank at the times of making tbefe loans (and
Congress have never yet been informed oT any
deficiency of revenue) the United States will of
confluence have paid upon the monies bor
rowed from the Bank of the United States, from
15 to 17 per cent, per nun. to wit, they will have
paid 5 per cent upon the original debt to France,
5 per cent, upon the monies borrowed for its
redemption, exclusive of douceurs and other
charges, and 5 per cent, upon the sum borrowed
of the bank, which may be deemed pact of this
dcpofit made in the bank by the United States.
But even dticarding these inferences, it mult be
admitted that the United States have been pay
ing 5 per cent, upon a loan made of the bank,
when a greater sum than the loan made, has
been at all times depofiled in bank on the pait
of the United States.
It is here to be remaikcd, that a balance of caih
is admitted, by the Treasurer's return, to have
been in his hands 3111 December, 1790, amount
ing to 973 342 dolls. 43 cents, and in July 30th,
1791, the fuin of 582,189 dollars, 54 cents.
I am informed that bills are often drawn in
favour of the bank lor monies in the hands of
the revenue officers in distant parts of the United
Statfs, and that credit is entered in the bank
book upon the receipt of such bills, although the
monies may not a&ually be in bank for some
time after the credit i* entered, and hence jt is
inferred, that the bank book does not conclu
sively (how the real sum in bank—not to men
tion that such bills answer all the purposes of
cafb, and ought theiefore to be credited upon
the receipt of them. It is to be remarked that
theie is a regular and continual influx of monies
into the bank by the operation of chefe bills.—
»It ismotvery material Whether a biH lodged in
bank to-day, should be paid to-day, provided
fornethiug like the fame sum (hould be paid in
consequence of a bill lodged in bank one or two
months ago, and the bill of to-dav, should be
paid one or two months hence. The following
flatement will, in some incafure explain this
idea, by exhibiting half-monthly the balances of
public monies in all the banks, about the mid
dle and end of each month; beginning with
May 1792, and ending with December of the
lame year.
D >lls. Cfs.
1792. May 340,322 11
duto 33**1'6 35
June 776,107 65
ditto 52 3,272 22
J ll, y 54**6,57 13
onto 421,426 91
741-47° *0
ditto 740,903 8
September 695,302 23
ditto 367.961 25
October 458.805 52
ditto 473«388 99
November 681,250 9
ditto 811,212 51
15th Decora. i,0a0,6i4 • 73
Do. 22d and sth
January Uft re- C 790,642 11
turns, \
The fourth resolution has afifen from that
pan of the printed report whieh remarks that
the rejidue a/ the sum drawn from Holland,
amounting 10 1.668.188 d011.!,s 27
phcabtc ta the pur chafe of the public debt. It is
known that the sum ol 1,374.656 dollars 40
cents, being the furpius of the revenue up to the
endlo; December 1790, was originally appropri
ated to the finking fund ; t | l-t t |, c fur pi us of
other appiopriations have been applied to this
fund, and that the intereil of the debt purchased
has alio been wholly appropriated to its in
crcafc : Xt is also known, that between 11 and
12 hundred thousand dollars, and no mi
the original appropriation, have bem
verted in the purchase of the debt, it i, lh ' \
somewhat unaccountable that f.» U,. r ' ,
~668,.88 dolU,, fho.ild b e drawn in,
loans abroad when Ihe linking fund ha, ,7
overflowed from domcilte rcfo Ul{<l Jnd .
the probability of pu.chaGn,; i, r*,' reintl *'
fened by llie rife in the price of vtpr , \
limitations of the last ast of Cnn E ,M, '
fuhjefl. It would not be deemediTc '
mical arrangement to m„ke a 1,.,,, of so , 01
fumof money upon terms by no means ho ' e
bte or advantageous, and' appropria,, u
purchase of (he debc it«der |, m , Ul , onl *
would forbid us invelliiure. The inlorm
called for in tins resolution may poflibly
tnelc difficulties. 7
The &hh and last h« ,„r n ,
th«t part of the printed report 'pa gl . , l() , !'
Hates the whole fuins drawn from
amount to 2,304,769 dollars, 3 c<n:s . b "
ther immediately presents to view -he bal
on hand, nor informs whi re that balance ii"
posited. It appears by the bank book lhat '
whole deposit of the United States ,„b, nk
this time, from aH rtfourjes, amountsio 700 f
dollars 11 cents, I ence it will appear t>o™
ffatemcut partly conjeanral, and partly | oailt
upon the ftaiements 111 the primtd rrpor- ,
some official documents, that >.554,853 d'oll
and 43 cents, remain unaccounted tor, as v
appear from the following account :
Sums which ought to be in the treasury-
Whole monies drawn from HolO
landas dated in print- repo. p. j. 2 >3°4,7
Deduct paid for St. Domingo, as >
stated in ditto, 455,2
Dolls. Cts.
Leaves a balance j g®,
Deduct to Foreign officers,if paid '191^
Leaves a balance of 1,668 :
Add surplus of finking fund, J '
con j eel lira I,
A4d iorplus ot revpnne cS uuj, ;>
reported at
8'
Whole amount Dollirs 2,345,4
Sums not taken into this estimate i—Fu
any monies not paid of the 191,316; due
foreign officer* : Second, so mu«h mroiei
bank as arole froni the revenue*: Third, I
receipts ef the current year. D«.
From this aggregate sum of 2,345,49]
D:duft in bank 793,643
Balance not accounted for 1,554,85^
In this last eftiniate cents have not be
taken into calculation, which makes an
considerable variation in some of the sums.
Another circnmthiuce appears foinewl
fmgular ; In the printed report 2,986,013!
rins are stated to have been drawn from H
land in the year 1792. In the bank book
appears from the lift of bills- drawn, tl
8,695,137 fiorins were drawn for in the si
time. This difference I presume may adi
of explanation, probably from the manner
this business, or from Tome caf
mistake. It deserves however to beexplain
It appears from aiwrter~ltaiement m;
up to the Ift of April, 1793, that there oui
to be at that time a fufficient sum of mot
in the treafary toreimburfe the loan of t
millions to the bank, and to answer all tb
ther purposes of government.
Treasury Dr.
April ift, 1793-
Balance of foreign loans
Surplus of finking fund,conjeft.
Bonds payable in Dec* 179 2
Do. Jan. 1793
Do. February
Do. March
Surplus of revenue of 1792
All the revenue of the current
year, estimated at 1,000,000
These sums make the sum of
Treasury Ci\
Debt to bank, if paid, 2,000,000
One quarter's interest toApr. '93 700,000
Bonds payable in Dec. if applied
to the lad quarter's interest
One quarter's expences of army
"•ao4foverflmcnt, cftimateti at 400,000-
Deduct this sum from
Balance in favor of the treasury,
if the debt to the bank be paid 664,265
The papers from which I have collefl
these ftatiments may lie deceptive in thei
selves, or may be subject to explanations fr (
others.—Candor, however, induces me to.
knowledge, that impressions rel'ulting f«
my enquiries into this fubjeft. have been ma
upon my mind, by no means favorable to!
arrangements made by the gentleman at t
head of the treasury department. But I il>
keep myfelf open to conviction in cafe oil
fufficient explanation which may be hereal
given, and 1 now avow that my acknowlei
ment of millake (hall beat lealt coinmenfur'
to any conviction produced.
I cannot help remarking, before I fit o°"
that we have been lcgiflating for some ? e '
without competent official knowledge <>'
(late of the treasury or revenues; in the con
of which time we have bec» engaged in
moll important fifcal arrangements, tha
have authorised a loan of the bank of t e
nited States for more than 530,020 do a
when probably a greater sum of public mo
wjis deposited in the bank ; that we
- pa(Ted a vote this session authorizing a 11 r
loan for 800,000 dollars, and that we *
upon the point of authorizing a lo»n a
for 2,000,000 dollars, without knowing
extent of the authorities at present exi
for borrowing, the amount of monies on '
in confequencc of loans already made, 0
application of tiie monies which may •
been used ; and I conceive it is no«
that this information be officially laid
this house. , ■
"The above refactions wore a?reea
Dof. C
t,668,182
4-)0,030
460,126
129.332
87,057
232,447
277,3° i
4,224,389
460,123
3,562,126
4,224,389